cyberguy72:
4 yuan to 1dollar.if u interested inbox me enapo49@yahoo.com

do you stay in Benin

This is bad for Nigeria! A healthy economy will never do this. The policy benefits China heavily economically and it also make this their currency stronger! And China devalues its currency every time to cheat!

There's good reason every country in world, including China, has Dollar reserve!
Buhari's economic adviser should be jailed.

maxxy:
The news that Nigeria has signed a currency deal with China allowing the free flow of the Chinese Yuan amongst Nigerian banks (https://www.thecable.ng/nigeria-china-sign-deal-on-free-flow-of-Yuan) is arguably one of the best (or worst?) policies so far of the Buhari Administration.

Banks would now be able to settle payments directly from Naira to Yuan, rather than from Naira to black market Dollar and then to Yuan. In fact, an extension of this is that debit and credit cards can now be issued and denominated in Yuan. A sizeable portion of the local Dollar demand is thus eliminated, reducing the pressure on our Dollar reserves.

To boost our Yuan liquidity, the Chinese loans being negotiated by the Federal Govt may be availed partly or wholly in Yuan. This will greatly boost Nigeria’s Central Bank and commercial banks’ Yuan liquidity. In fact, the Nigerian and Chinese Govts are reported to have entered into a framework arrangement for currency swaps as a means of providing the much needed liquidity.

At current rates of 30.74 Naira to the Yuan, and 6.74RMB (Yuan) to the Dollar, Nigeria would be able to fund its importation at the equivalent of the current official rate of N199/$1.

PROS

This policy will lead to a reduced demand for Dollars and easing off of pressure on our Dollar reserves, as a large portion of Nigeria’s import needs are served by China (China is Nigeria’s largest trading partner – http://www.premiumtimesng.com/business/business-interviews/188666-china-tops-u-s-as-nigerias-biggest-trade-partner.html). Deals such as Dangote’s purchase of 3400 trucks (http://venturesafrica.com/dangote-group-signs-deal-for-3400-trucks-supply/) will henceforth be settled in Yuan rather than scarce Dollar reserves, which would then be sufficient to service other legitimate investor demands such as portfolio investments, capital repatriation, etc.

This policy also implies cheaper imports from China as importers from China would import at the equivalent of the current official rate of N199/$1 as against the current parallel market rate of N320/$1.

CONS

This policy may keep Nigeria as an importation-dependent economy. Due to its deliberate policies towards boosting its economics of scale, China produces most goods at a comparative advantage. While we have decried the importation of toothpicks and the likes from China, we must bear in mind that we import toothpicks not because we do not have bamboo and other raw materials in Nigeria, but because China is able to bring these goods to the Nigerian market at a much cheaper price than the one produced right here in Nigeria. The reasons are not far-fetched; the availability of infrastructure, cheap labour and use of manufacturing clusters. This policy would therefore sound a death-knell to the resurgent local production of importation substitutes.

Again, this policy would only bear the projected fruits if and only if the Nigerian factor doesn’t come into play. As demand for Yuan surges, a parallel market for Yuan may soon be created, bringing us back to this same point many years after.

WHITHER NIGERIA?

This policy should not be viewed as a solution to Nigeria’s Dollar dependency as we may otherwise inadvertently create a Yuan dependency. At the very best, this policy should be a stop-gap, a short-term measure devised to keep things in place while we sort out our infrastructural and policy challenges. The future prosperity of Nigeria lies in production for local consumption and export, and not the consumption of foreign imports.

Maxwell Asowata, Legal Practitioner and Business Consultant, writes from Lagos, Nigeria.

Source - http://ecstasyhouseng.com/index.php/2016/04/13/free-flow-of-yuan-in-nigerian-banks-what-you-need-to-know/

This is good news for my importer brothers.
Fellow Nigerians why must we behave like isrealites.. When there was no dollar to purchase needed goods from China people were complaining.. Now you can get those goods saving almost 50 percent of what you are supposed to spend.. People are still complaining.. What do we really want.. This policy could also allow for purchase of equipments needed to start industries here.. And good news is we could now buy new ones instead of the old used junk made in America
. If this free flow of yuan is true then get ready for massive reduced prices.. And springing up of industries.. No more Naira-dollar-yuan. The middle man called dollar has been eliminated.. God bless Nigeria.. God bless Nigerians.. May we all find better life and may the quality of our lives be improved daily.

olatade:
Currency Deal With China To Crash The Dollar By 70% !

President Buhari doesn't have certificate but he sure knows how to make things happen and do what some heroes with unproven Ph.D. can't even dream of...

1.As President Buhari and CBN Governor, Emefiele moved closer to actualizing their promise to strengthen the naira against the US dollars

2.By signing a landmark currency deal with the Industrial and Commercial Bank of China Ltd on Tuesday in Beijing, China.

3. The agreement will allow Nigerian who imports mainly from China conclude their transactions in the Chinese currency instead of the dollar

4. The new agreement would see Nigeria-China trades, which accounts for over 70 percent of imports into Nigeria, concluded in the Yuan.

5. Until now over 90% of int'l trades between Nigeria & the world is done in dollars, & in the process putting so much pressure on the naira

6. Nigeria imports almost all it needs from the West, Middle East and Asia.

7. The CBN is expected to diversify a huge chunk of Nigeria’s foreign reserve from the dollars to the Yuan to perfect the agreement.

8. “It means that the renminbi (Yuan) is free to flow among diff banks in Nigeria, & the renminbi has been included in the FXR of Nigeria,”

9. FXR means foreign exchange reserves

10. Lin Songtian, director general of the African affairs department of China’s foreign ministry, told reporters in Beijing ...

11. .. a few minutes after the agreement was signed between the Governors of the nations’ reserve banks..

12. in the presence of President Buhari & President Xi Jingping of China, who is hosting Buhari and top Nigerian officials to a state visit.

13. Lin said a framework on currency swaps has been agreed with Nigeria, making it easier to settle trade deals in Yuan.

14. China has signed currency swap deals with countries ranging from Kazakhstan to Argentina as it promotes wider use of its Yuan.

15. Nigeria would become the clearinghouse for Yuan denominated transactions for the whole of Africa following the agreement.

16. Beijing also signed agreements to develop infrastructure in Nigeria, part of a drive to deepen its ties with Africa.

17. It has offered Nigeria a loan worth $6 billion to fund infrastructure projects.

18. Also, ICBC signed a $2 billion loan deal with Dangote group, to fund two cement plants it plans to build, Lin told Reuters.

19. China’s official Xinhua news agency cited President Xi as telling Buhari that there was huge potential for economic cooperation, naming

20. Naming oil, refining and mining..

21. Nigeria is also considering issuing Panda bonds (mainly Yuan denominated) as against euro bonds because they are cheaper.

This is good, better days are ahead, I'm sooo happy and hopeful right now. Nigeria shall be great again!

Wow you should be a first class material my brother God bless you for this analysis

[quote author=hurricaneChris post=44684132]Very simple!

Convert your naira to yaun at normal rates, convert your yaun to dollars at normal rates again. Then recycle the dollars back into naira at N320.

Some people's calls have been picked by by this miscalculation.

wrong.

you have forgotten that once the demand for the USD goes down, it would not sell for 320 again.

In fact, i predict that the naira will appreciate against the USD in the next 48 hours...

watch this space

His analysis is flawed even before ur submission. He talked of converting naira to yuan, yuan to dollar all at official rates and then convert back to naira in the parallel market but my question is WHERE would you see the dollar in Nigeria to exchange for yuan at official rate.

His analysis is only possible when you convert to yuan in Nigeria and then travel to China from where you can easily convert to dollar and then come back to Nigeria to sell at the parallel market ''which will not be possible considering the cost of transportation''.

[quote author=Lastanza post=44695360][/quote]


do you think the exchange rate of online exchangers would be affected greatly

maxxy:
The news that Nigeria has signed a currency deal with China allowing the free flow of the Chinese Yuan amongst Nigerian banks (https://www.thecable.ng/nigeria-china-sign-deal-on-free-flow-of-Yuan) is arguably one of the best (or worst?) policies so far of the Buhari Administration.

Banks would now be able to settle payments directly from Naira to Yuan, rather than from Naira to black market Dollar and then to Yuan. In fact, an extension of this is that debit and credit cards can now be issued and denominated in Yuan. A sizeable portion of the local Dollar demand is thus eliminated, reducing the pressure on our Dollar reserves.

To boost our Yuan liquidity, the Chinese loans being negotiated by the Federal Govt may be availed partly or wholly in Yuan. This will greatly boost Nigeria’s Central Bank and commercial banks’ Yuan liquidity. In fact, the Nigerian and Chinese Govts are reported to have entered into a framework arrangement for currency swaps as a means of providing the much needed liquidity.

At current rates of 30.74 Naira to the Yuan, and 6.74RMB (Yuan) to the Dollar, Nigeria would be able to fund its importation at the equivalent of the current official rate of N199/$1.

PROS

This policy will lead to a reduced demand for Dollars and easing off of pressure on our Dollar reserves, as a large portion of Nigeria’s import needs are served by China (China is Nigeria’s largest trading partner – http://www.premiumtimesng.com/business/business-interviews/188666-china-tops-u-s-as-nigerias-biggest-trade-partner.html). Deals such as Dangote’s purchase of 3400 trucks (http://venturesafrica.com/dangote-group-signs-deal-for-3400-trucks-supply/) will henceforth be settled in Yuan rather than scarce Dollar reserves, which would then be sufficient to service other legitimate investor demands such as portfolio investments, capital repatriation, etc.

This policy also implies cheaper imports from China as importers from China would import at the equivalent of the current official rate of N199/$1 as against the current parallel market rate of N320/$1.

CONS

This policy may keep Nigeria as an importation-dependent economy. Due to its deliberate policies towards boosting its economics of scale, China produces most goods at a comparative advantage. While we have decried the importation of toothpicks and the likes from China, we must bear in mind that we import toothpicks not because we do not have bamboo and other raw materials in Nigeria, but because China is able to bring these goods to the Nigerian market at a much cheaper price than the one produced right here in Nigeria. The reasons are not far-fetched; the availability of infrastructure, cheap labour and use of manufacturing clusters. This policy would therefore sound a death-knell to the resurgent local production of importation substitutes.

Again, this policy would only bear the projected fruits if and only if the Nigerian factor doesn’t come into play. As demand for Yuan surges, a parallel market for Yuan may soon be created, bringing us back to this same point many years after.

WHITHER NIGERIA?

This policy should not be viewed as a solution to Nigeria’s Dollar dependency as we may otherwise inadvertently create a Yuan dependency. At the very best, this policy should be a stop-gap, a short-term measure devised to keep things in place while we sort out our infrastructural and policy challenges. The future prosperity of Nigeria lies in production for local consumption and export, and not the consumption of foreign imports.

Maxwell Asowata, Legal Practitioner and Business Consultant, writes from Lagos, Nigeria.

Source - http://ecstasyhouseng.com/index.php/2016/04/13/free-flow-of-yuan-in-nigerian-banks-what-you-need-to-know/

Guy you go school true true!

Good move at a wrong time, lets not forget that all country that tried to ditch American currency esp in Africa received it hot in return..... It's gonna be so hard for to cope the hit

I'm really impressed...

brightology3:
what's the naira equivalent.
modified. ve gotten it 30.656 naira

yes thats the average price for a hot 2 and hot 3

Nobody has answered my question here, so as a result of this agreement between Nig and China can i make online transactions for N199/$ or less to any merchant any were in the world? eg pay Facebook ads for N199/$

Pleasant news there.... Even as Nigeria's #1 student online market place hits the market--- www.studentsthingy.com

hurricaneChris:
Very simple!

Convert your naira to yaun at normal rates, convert your yaun to dollars at normal rates again. Then recycle the dollars back into naira at N320.

Some people's calls have been picked by by this miscalculation.

sorry bro yaun is fixed to the dollar since 1992 by Chinese gov. No market volatility possible.

This should help reduce pressure on the dollar reserve and help the naira stabilize against the dollar.
NairaTinz,
http://justprice.com.ng

BiafraBushBoy:
Bubu just satisfied our greedy demand for foreign products!!

Oya let's switch to Yuan till it becomes 1 Yuan = 300 naira, we will find another country to swap with again!!!

Nigerians don't wana suffer but they want to be exporting!!

How is that possible??

China are not like other Western countries that prefer there dollar, pounds sterling or euro to always rise. China Wil even prefer to devalue there Yuan than to increase its exchange rate. They won't never allow high exchange rate to Yuan which will give way to rivalry. I won't be surprise if China agrees to let Yuan goes with N10 in future

Linzo:
Nobody has answered my question here, so as a result of this agreement between Nig and China can i make online transactions for N199/$ or less to any merchant any were in the world? eg pay Facebook ads for N199/$

You didn’t get the write up, no one was telling you u Wil instantly exchange ur dollar at official rate with ur bank,if you need to make payment in dollar rate, neither in the black market rate. The focus here is Yuan and which will in turn force the dollar rate to crash drastically

udumosam23:
At current rates of 30.74 Naira to the Yuan, and 6.74RMB (Yuan) to the Dollar, Nigeria would be able to fund its importation at the equivalent of the current official rate of N199/$1.


wait o, am I missing something here, like guys have been converting their nairas to yuan, then buy from US or UK at lesser rate with Chinese yuan o.

And I dey here dey wait make dollar come down b4 I reassume importation. chai, I dull, I dull.

wey my chrome book, ( starts browsing on how to convert my naira to yuan and then to dollar ). Thunder fire devil.

bros hw far wit ur naira to yuan conversion where and hw much u get am reply asap

uduak2016:
Somebody is trying to piss America off by abandoning the Dollar for other currency...no nation has tried it and was successful at it especially in Africa.

...the only thing you watch and read is porn oyah Google and see

China Yuan needed in large quantity for Payment of goods. Its a daily transaction.

Good